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Kraken has launched Bitcoin Vault, a new yield product for long-term holders powered by Veda and Sentora, utilizing DeFi protocols like Aave.
Crypto exchange Kraken has introduced Bitcoin Vault, a new product designed to let long-term holders generate bitcoin-denominated rewards through decentralized finance (DeFi) strategies [1]. The offering, part of the Kraken Earn suite, aims to provide passive income opportunities while allowing users to maintain exposure to bitcoin's price [1].
Key takeaways
The Bitcoin Vault functions by converting user deposits into Kraken Wrapped Bitcoin (kBTC), which is then allocated across lending platforms such as Aave, Morpho and Tydro [2]. This structure is intended to abstract away the operational complexity typically associated with DeFi participation, allowing customers to access yield opportunities directly through their Kraken accounts [1]. The product is non-custodial, meaning only depositors can withdraw or transfer their funds, though withdrawals are estimated to take five days to process [2]. Service providers take a 25% performance fee on the rewards generated [2].
Approximately 10 hours after the launch, infrastructure provider Veda reported that the yield product had passed $30 million worth of Bitcoin deposits from 4,000 unique wallets [2]. This launch contributes to Kraken’s broader DeFi Earn offering, which has grown to more than $240 million in assets under management since launching in January [1]. Additionally, Kraken’s three stablecoin yield products introduced in January have exceeded around $245 million in customer deposits and generated over $2.2 million in yield, according to the exchange [2].
The release reflects a structural shift in the digital asset market where exchanges and DeFi firms are competing to transform passive Bitcoin holdings into income-generating infrastructure [4]. Following the collapse of centralized crypto lending products in 2022, the industry has repositioned yield products around transparent onchain infrastructure and overcollateralized lending markets [1]. Kraken stated that Bitcoin Vault is designed to appeal to both existing customers and external bitcoin holders looking to consolidate assets while generating additional yield [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jun 3, 2026 · How we report